Mortgage rates continue to fall

Development of building interest rates in 2021: forecasts, expert opinions & daily updated chart!

1. Which factors influence the development of building interest rates?

The building interest does not depend directly on the key interest rate set by the European Central Bank (ECB) and even at in March 2016 zero percent lay. Building interest rates had also reached an all-time low in 2017. Since 2018 there has been a slight increase in interest rates between 0.75% and 1.00%. At the end of the year In 2020, lending rates remained at a very low level.

But there is one indirectly Relation to Pfandbrief yields and the yield on government bonds. This happens because the banks obtain the funds for the building loans, among other things, by issuing Pfandbriefe, the yield of which in turn depends on the interest on government bonds. And this is ultimately also influenced by the key interest rate - and by the fact that the ECB is currently buying up massive bonds.

Put simply, one leads weaker economic development at a low interest rate, as the ECB then tries to stimulate the economy with cheap money. But the US Federal Reserve (Fed) is also setting the pace: if it increases the key interest rate, the ECB will also be forced to adjust its interest rate policy, as otherwise capital will migrate overseas.